JPMorgan (JPM) Reduces Credit Line by $648M to KKR's FSK Fund

AI Summary

JPMorgan Chase & Co. (JPM) reduced its credit line to FS KKR Capital Corp. (FSK) by $648 million, approximately 14%, bringing the total facility down to $4.05 billion. FSK announced that KKR will inject $150 million as equity and another $150 million to buy shares from exiting investors. The fund also reported first-quarter losses of $2 per share, totaling about $560 million, with a net asset value decline of around 10%. As of the end of the first quarter, non-accrual loans surged to 8.1%, prompting concerns regarding the fund's stability and market position.